Lifting of US crude export ban and its impact on the global market
The U.S., the largest consumer, producer and the importer of the crude oil in the world has lifted the 40-year-old ban on crude exports. This was the result of a three-year-long negotiation between US producers and the Congress.
This article focuses on the lifting of the US crude export ban and its implications.
Lifting of US crude export ban and its impact
In 1975, the U.S. government passed the Energy Policy and Conservation Act (EPCA) that banned crude oil export, except to Canada. The law was passed after the price of crude oil increased from $21 to $51 within a month because of the Arab oil embargo.
During the late-eighties, the U.S. crude production started declining after reaching the peak of 8.7 mbpd in 1985; and hit low at 5mbpd in 2007.
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